HULSHOF INTRODUCES LEGISLATION EXTENDING BIODIESEL INCENTIVE
U.S. Congressman Kenny Hulshof has introduced legislation today that will extend the biodiesel tax incentive that is currently set to expire in 2006. Hulshof's bill would extend the biodiesel incentive through 2010.
WASHINGTON, D.C. - - U.S. Congressman Kenny Hulshof has introduced legislation today that will extend the biodiesel tax incentive that is currently set to expire in 2006. Hulshof's bill would extend the biodiesel incentive through 2010.
"We need look no further than the nearest gas pump to realize that we must do more to lessen our dependence on foreign oil," stated Hulshof. "Given biodiesel's many beneficial qualities, it makes perfect sense for federal policy to encourage the production and use of this fuel. Increased biodiesel production will benefit consumers, farmers and our environment. With energy prices at an all-time high, now is the time to extend this common-sense tax incentive."
In 2003, Congressman Hulshof introduced H.R. 3119, the Renewable Fuels and Transportation Infrastructure Enhancement Act. This legislation, among other things, called for the creation of a biodiesel tax incentive. Under Hulshof's bill, biodiesel derived from recycled oils is eligible for a 50 cents-per-gallon credit. Biodiesel derived from first-use virgin vegetable oils - such as soybean oil - and animal fats was eligible for a $1.00 per gallon credit. Hulshof's proposal creating the biodiesel tax incentive was ultimately enacted as part of the American Jobs Creation Act of 2004.
"We've already seen how successful this tax incentive is in increasing the profile and demand for biodiesel," said Dale Ludwig, the Executive Director and CEO of the Missouri Soybean Association. "Federal policy that encourages the use of this renewable source of energy is a win-win for consumers and soybean farmers. Congressman Hulshof is a true champion of biodiesel in the United States Congress."
Hulshof introduced the bill with U.S. Rep. Earl Pomeroy (D-ND). U.S. Senators Jim Talent (R-MO) and Blanche Lincoln (D-AR) will introduce companion legislation in that chamber tomorrow.
"Extension of this incentive will provide the certainty needed to encourage the expanded production and use of biodiesel," Hulshof said. "We are better off for every gallon of biodiesel that replaces a gallon of imported diesel. The federal government must continue to stand firmly behind the development of renewable fuels like biodiesel."